The FSA has published its business plan 2005/06, which, it said put small firms at the centre of its core aims.
In taking 14,000 general insurance firms under its regulatory wing, the FSA said it has a new responsibility to small firms which did not exist before.
The FSA listed three aims:
·Promoting efficient, orderly and fair markets
The FSA said it was keen to promote the UK as a hub for international business at a time of regulatory change.
It said it would drive forward established projects. In the wholesale of insurance sector, the FSA said it would concentrate on the issue of conflicts of interest and transparency, including adherence to its rules on transparency on fees and other payments.
·Helping retail customers achieve a fair deal
The Treating Customers Fairly campaign will continue, it said. Work would be done to underline the importance of improving the quality, clarity and relevance of information provided to consumers.
·Improving business capability and effectiveness
The FSA has outlined four main objectives within this section. They are: FSA will continue to act effectively; proportionate policies will be devised; resources used efficiently; and the FSA will strive to become an easier organisation with which to do business.
The FSA has come in for some criticism from small firms which have been put under economic strain by the costs of compliance.
The watchdog said it would join forces with the Practitioner Panel to review the costs and benefits of regulation.
FSA chairman Callum McCarthy said: “A key challenge for us will be to demonstrate that the costs of regulation are justified by the benefits.
“We will also be looking to cut back our requirement where we can do so without damaging our ability to meet regulatory objectives. This reflects a new determination to be more rigorous about the burdens and costs imposed.”
The business plan also puts enforcement as one of its key priorities.
Following the Financial Services & Markets Tribunal ruling on the case between the FSA and Legal & General, it said it would review its procedures for investigations and making enforcement decisions.